The Ultimate Fighting Championship (UFC) has begun receiving proposals from potential media partners for its upcoming broadcast rights agreement, scheduled to commence in 2026. However, the promotion is taking its time and is not hurrying to announce any finalized deal.
The UFC`s exclusive negotiation window with ESPN concluded in April. This development allowed other networks and potential streaming services to start submitting offers for various portions or the entirety of the future broadcast rights package. Reports suggest the UFC is aiming for an annual valuation around $1 billion for the new terms, building on its current seven-year contract with ESPN which began in 2018.
While the UFC is exploring options with other interested parties, TKO President and Chief Operating Officer Mark Shapiro assures that conversations with ESPN are actively ongoing.
“We are currently engaged in discussions with various third parties concerning the UFC`s media rights,” Shapiro stated during a recent TKO financial call. “I would describe these conversations as thoughtful and strategic. There is nothing to announce at this time, and ESPN remains very much involved in the process.”
Shapiro lauded ESPN`s role: “I think we`ve been quite open about what an excellent partner they have been and how crucial they were to our expansion and achievements. I still consider them among the top marketing powerhouses in the business, not to mention their brand and the excitement surrounding the main ESPN channel and whatever its new name will be next week. Jimmy Pitaro [ESPN chairman] and Bob Iger [Disney CEO] are both fans of the UFC and have personally attended events. We would be delighted to continue our partnership, and they are certainly still a factor, but as I mentioned, for now, it`s just ongoing discussions with different parties, with no further updates.”
Shapiro`s reference to “ESPN flagship” pertains to the new streaming service planned by the Disney-owned network. This service intends to integrate all standard channels currently offered via cable and satellite, such as ESPN, ESPN2, and ESPNews, along with future plans for its existing streaming platform, ESPN+.
Although the UFC did not reach a new agreement with ESPN during their exclusive negotiation window, it was never expected that a deal would be finalized within that period. The expiration of this exclusive window simply enabled the UFC to formally explore the market and solicit offers from other networks or streaming services.
No final decisions have been made regarding the structure of the next broadcast rights deal. Shapiro reiterated the company`s emphasis on flexibility concerning pay-per-views, Fight Night events, and other promotional programming.
“We maintain significant flexibility,” Shapiro commented. “That`s the advantage of owning our league. It`s the benefit of having an executive management team as agile and cohesive as ours. As we often say, we are both the owners and the commissioners simultaneously. We will make decisions that are in the best long-term interest of the sport and the brand. We have to balance the financial benefits of this rights deal with expanding our reach, increasing engagement, and growing the brand.”
He added, “I believe the market is still robust. Our content is available year-round and strongly appeals to young men. We see incredible viewership among those under 18, tied with the NBA as the top draw in that demographic among major sports. We are a proven solution against subscriber churn and an effective method for acquiring new subscribers. Therefore, we are cautiously optimistic.”
The UFC`s current agreement with ESPN was originally signed in May 2018. Despite the upcoming 2026 start date for the new contract period, it seems the promotion is not rushing towards a conclusion in its current negotiations.
Discussions are ongoing and will continue until an agreement is successfully reached.
Shapiro concluded, “We feel no pressure. The current economic climate is volatile with considerable uncertainty. We also recognize that major sports rights deals aren`t frequently available on the market, so we will be opportunistic yet responsible in choosing the best partner for our brand`s continued growth.”
